Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2024 Earnings Presentation
22 slides from Lucara Diamond's earnings presentation, May 10, 2024
Slide 1: Q1 2024 Results Conference Call
Q1 2024 Results Conference Call MAY 10, 2024 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues $41.1 million; Operating margin of 51% $17.9 million2 invested in $140 million drawn on 93,560 carats from UGP in Q1; significant shaft Project Loan3; $25 million Karowe sold through Operating cost $26.00 per
Slide 4: Successful Execution of Amended Lenders Agreement
Successful Execution of Amended Lenders Agreement Project financing debt package of $220 million Debt package consists of two facilities, a $190 million Project Loan to fund the development of the UGP at the Karowe Mine, and a $30 million senior secured working capital facility (the "WCF") which is
Slide 5: Karowe Underground Expansion – Q1 Progress
Karowe Underground Expansion – Q1 Progress $17.9 million invested in Q1 2024 Sinking and lateral development continued. The ventilation shaft reached 426 metres below collar and is approximately 19 days ahead of the July 2023 rebase schedule update. The production shaft reached 449 metres below coll
Slide 6: Karowe Underground Expansion – Q2 2024 Focus
Karowe Underground Expansion – Q2 2024 Focus Up to $100 million capital cost in 2024 Sinking of ventilation and production shafts to the 470-level. Commencement of 470-level station development and lateral development. Planned cover drill campaigns in the ventilation and production shafts. Probe hol
Slide 7: Underground Project – Vent Lateral Development
Underground Project – Vent# Lateral Development 670L Station – Ventilation Shaft Jumbo drills in Vent Shaft Access 7
Slide 8: Underground Project – Prod Lateral Development
Underground Project – Prod# Lateral Development Access 003 – Production shaft to Vent shaft View of Production Shaft from Sub-bank 8
Slide 9: Underground Project – Prod Lateral Development
Underground Project – Prod# Lateral Development UG Crusher Components delivered to site Bulk Air Cooling System 9
Slide 10: Recovery of Large Diamonds
Recovery of Large Diamonds Specials contribute ~60-70% by revenue and ~5-7% by weight historically Since 2012: 34 diamonds in Over 11 diamonds sold for > US$10 First Years of Underground Production excess of 300 carats have million, represents US$237 million are dominated by EM/PK(S) ore with a been
Slide 11: Q1 2024 Recovered Specials
Q1 2024 Recovered Specials 2 diamonds greater than 100 carats ✓ 160 Specials recovered ✓ 5.1 wt.% of production ✓ 89% carats recovered from the South Lobe ✓ 7% carats recovered from the Centre Lobe and 4% carats recovered from mixed ore Selection of April 2024 recoveries, including a 225 carat Type
Slide 12: Sales Channels
Sales Channels Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Increasing Margin Capture Along the Value Chain Tenders (Auctions) of Proprietary Digital Manufacturing into Rough Diamonds < 10.8 Marketplace for Rough
Slide 13: Clara History and Q1 2024 Sales Completed
History 95 sales completed Q1 2024 $109 million sold by value Karowe 33% 67% stones Third-party ~60,500 carats sold by weight stones $4.9 million transacted in Q1 2024 106 buyers 13 13
Slide 14: Q1 2024 Sales Channels – Karowe Mine
Q1 2024 Sales Channels – Karowe Mine Sales through HB Antwerp, Clara, and Quarterly Tender • High value Specials (+10.8 carats) were manufactured and sold as polished through the HB Antwerp supply arrangements (shipments to HB resumed in December 2023, NDSA renewed in February 2024). • Diamonds betw
Slide 15: Q1 2024 Operational Highlights – Karowe Mine
Q1 2024 Operational Highlights – Karowe Mine Three months ending March 31, 2024 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 698,870 700,678 809,999 541,400 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Carats recovered(1) (carats) Carats sold (carats) Operating cost per tonne
Slide 16: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Three months ending March 31, 2024 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $41.1 $42.8 $15.3 $12.7 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Net (loss) income (millions) Operating cash flow before working Operating cash flow per shar
Slide 17: 2024 Annual Guidance – No change in Q1
2024 Annual Guidance – No change in Q1 (All currency figures in U.S. Dollars) Karowe Diamond Mine 2024 Guidance Diamond revenue1 (millions) $220 to $250 Diamond sales (carats) 345,000 to 375,000 Diamonds recovered (carats) 345,000 to 375,000 Ore tonnes mined (millions) 2.8 to 3.2 Waste tonnes mined
Slide 18: Botswana – Relationship with Diamonds
Botswana – Relationship with Diamonds Karowe Mine – Botswana (All currency figures in U.S. Dollars, unless otherwise stated) 18
Slide 19: Community Impact – Q1 Update
Community Impact – Q1 Update Mokubilo Mmadikola Khwee Small Kolonkwaneng Letlhakane Integrated Farm Hardware Store Stock & Fodder Horticulture Abattoir Horticulture & Egg Building Material Small Stock and Vegetable Production Upgrade from Production Fodder Production slaughterhouse to an Total Inves
Slide 20: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people, and stakeholder engagement ✓ The mine has operated for three ✓ Global Industry Standards ✓ Compliant with the Kimberley years without a lost time injury Tailing Management Process and certified by the ✓ No reportable e
Slide 21: What Makes Us Excited
What Makes Us Excited The resource never disappoints Karowe’s AK6 kimberlite has consistently produced some of the world’s largest and highest value diamonds and we have only scratched the surface Learnings from past experience sets the Company up for the future. A significant knowledge base has bee
Slide 22: Contact
Contact Suite 2800, Four Bentall Centre 1055 Dunsmuir Street PO Box 49225 Vancouver, BC V7X 1L2 Tel: +1 604 674 0272 Email: info@lucaradiamond.com LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE